Baleen application moving closer to approval decision
Shares in BPH Energy Ltd (ASX:BPH) are up about 40% since the start of the month, mainly driven by an announcement last week that the National Offshore Petroleum Titles Administrator (NOPTA) confirmed that the application regarding a proposed new Baleen well, offshore NSW has made some progress.
BPH and its joint venture partner Bounty Oil and Gas (ASX: BUY) applied a suspension, variation and extension to the permit terms for PEP11, and this is in the final phase of a decision process with the Joint Authority moving towards a decision.
The application was made to enable the JV to proceed with the drilling of a well at Baleen.
The Baleen well program in PEP11 (Offshore Sydney Basin) offers significant potential environmental benefits in carbon capture and storage (carbon reduction) for the greater Sydney/Newcastle area.
Management noted today that the offshore Sydney Basin offers a solution for the gas supply issues that have impacted the east coast gas market for the last five years with estimates of up to 5.7 trillion cubic feet of prospective gas resources within structural targets in the offshore area.
This drill test will also investigate the potential future storage capacity for CO2 emissions capture, a factor that management fleshed out in great detail today with BPH saying today that the basin offers a substantial opportunity to make a meaningful impact on the reduction of CO2 emissions through CCS -Carbon Capture and Storage (geo-sequestration of CO2 emissions).
BPH looking to replicate Otway Basin carbon capture strategy
BPH cited research conducted by the International Energy Agency and the Intergovernmental Panel on Climate Change which apparently drew the conclusion that CCS can play a more important role in helping to meet global emissions reduction targets.
Independent research has indicated that the Sydney Basin is a major contributor to Australia’s greenhouse gas emissions.
In commenting on the status of Sydney Basin, BPH said, ‘’The NSW Sydney Basin region contains the largest number of stationary CO2 emission sources in Australia, including oil refineries, coke ovens and power stations.
‘’Eleven major stationary sources of anthropogenic CO2 within the Sydney Basin alone contribute 34% of the total national emissions.’’
According to BPH, the Otway Basin CO2CRC is already researching the sequestration of CO2 in Victoria, but it will not deal with the largest source of CO2 in Australia, namely NSW.
The Victorian CO2CRC aims to bring together multiple CO2 capture projects in Victoria’s Latrobe Valley, transport CO2 via a shared pipeline and inject it into deep underground, offshore storage sites in Bass Strait, a strategy that BPH believes could be replicated in the offshore Sydney Basin.
BPH Energy investee Advent Energy is proposing with its Joint Venture partner Bounty Oil and Gas to use the gas exploration drilling program at Baleen to investigate as a secondary objective the potential for CCS -Carbon Capture and Storage (geo-sequestration of CO2 emissions).